CODE Falls 9%: Q4 Rev, EPS Miss, Q1 View Misses

By Tiernan Ray

Shares of flash memory chip maker Spansion (CODE) are down $1.12, or 8.5%, at $12.05 after the company this afternoon reportedQ4 revenue and earnings per share that missed consensus, and projected a potential loss per share this quarter where analysts had been modeling a profit.

Revenue in the three months ended in December rose 2%, year over year, and fell 7%, quarter to quarter, to $224 million, yielding EPS of 34 cents.

Analysts had been modeling $234 million and 36 cents.

Gross margin in the quarter was 32.1% on a GAAP basis, 36.1% on an adjusted basis.

CEO John Kispert said the quarter was characterized by “challenging market conditions” but that “Assuming business confidence improves, we expect to resume revenue growth throughout 2013.”

For the current quarter, the company projects revenue in a range of $180 million to $205 million, and profit per share, excluding some costs, of negative 5 cents to 6 cents per share.

Analysts have been modeling $226 million and a 28-cent net profit.

Spansion is holding a conference call with analysts, which began at 4:30 pm, Eastern time. You can catch the remainder of the call via the webcast here.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.